Re:402 Payment Required, and why micropayments are doomed
by RcouF1uZ4gsC on Tuesday May 19, 2020 @09:42PM
(#23242443)
The other thing credit cards did is reduce the risk of employee theft and even armed robbery.
There is also a time savings. You don’t need employees counting and recounting the cash with witnesses when the cashier changes.
Cash needs to be physically secured. A cash register full of credit card receipts is pretty worthless.
There is a nice article which hopefully somebody can link that explains that visa was a success because merchants reduced their costs, too. They had to do informal credit accounting for all their clients who only paid for the purchased goods once a month. With visa, that accounting position, which could be a full-time employee, wasn't needed any more. Furthermore, they reduced their risk of clients defaulting on those micro loans.